Huawei linked to embargoed tech deal with Iran

Chinese telecommunications firm Huawei has been implicated in a deal to sell over £1m of embargoed Hewlett-Packard computer equipment to Iran.

A report by Reuters claims that in late 2010 a major Iranian partner of Huawei offered to sell at least £1m worth of embargoed HP equipment to Iran's largest mobile phone operator, Mobile Telecommunications.

Huawei has insisted that neither the company nor its partner ultimately provided HP products to the telecom company, adding that its business in Iran is, "in full compliance with all applicable laws and regulations".

The incident has prompted fresh accusations that Chinese companies are helping Iran to evade trade sanctions, and will raise further questions about the company, the world's second-largest telecommunications equipment maker.

Back in October, both Huawei and fellow Chinese telecoms company ZTE were accused in a US congressional report of spying for the Chinese government, and that they posed a threat to national security that could not be trusted. Both companies denied the claims.